Portage proposes 1.4 percent hike in water-sewer bills for 2014-15

PORTAGE, MI – After years of hefty rate increases, Portage water and sewer customers could be looking at a smaller hike for 2014-15.

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But they may not be getting a break on their bill if they ran faucets to avoid freezing water lines in February and March.

A 7:30 p.m. April 29 public hearing has been set for comments on the proposed utility rates that call for a small decrease in the sewer commodity rate, the same water commodity rate, slight increases to the basic quarterly charges for water and sewer and an overall 1.4 percent increase to the average customer that will cost an additional 85 cents a month or $10.24 a year.

The rates are recommended by members of the Portage City Council Water-Sewer Rate Study Committee made up of council members Nasim Ansari, Richard Ford and Claudette Reid and residents Randy Orwig and Ted Vliek Sr.

Their recommendation of an overall 1.4 percent increase, which would result in the typical year bill rising from $729.25 to $739.49, is well under recent rate hikes that have been as high as 11 percent.

The reason, they said, is that the city has successfully been able to deal with its past water fund deficit, provide sufficient working capital to maintain a healthy utility system and meet its minimum debt level.

Under the proposal, the sewer commodity rate will drop from $4.70 per thousand gallons of metered water to $4.60, the water commodity rate will remain at $3.19 per thousand gallons and basic quarterly charges for water and sewer will rise slightly to provide funding for certain fixed costs.

The committee voted 4-1 on the proposed rates, with Ansari voting no. The councilman, a retired city of Kalamazoo water and wastewater official, said he is concerned that Portage water customers are paying a much higher rate than Kalamazoo water customers.

Ansari said Portage water customers are paying at least 260 percent higher water rates than Kalamazoo customers, and that is why he voted against the proposed rates for 2014-15.

“Why are our water commodity rates so much higher than Kalamazoo’s?” Ansari asked Chris Barnes, Portage director of transportation and utilities. Barnes said he would prefer to answer that at the April 29 public hearing.

Ansari also voted against the committee’s recommendation that Portage water customers not get a discount for running their water taps to avoid freezing water lines.

The council after some discussion voted to support the committee’s recommendation that no water discount be given but that the historical sewer cap be applied to the 2014 winter quarter billing. The recommendation is that when meters are read in the spring that customers be billed for water use but that the sewer bill be capped at 125 percent.

The argument by the committee and Barnes for not giving a water discount is that running water only accounted for 400,000 gallons extra during that period Feb. 16-March 1 when the city asked customers to run their faucets to avoid freezing pipes. That represents an additional cost of only $1,276, or about 9 cents per account of the 15,000 or so customers.

The committee did recommend, though, that adjustments be made to the 52 customers that had frozen water lines and that the city administration look at any accounts with a 10 percent increase in usage to determine if adjustments are warranted.

Ansari said that he opposed the committee’s recommendation and favored instead a water rate discount also for Portage customers. It is not fair, he said, that Portage residents who are city of Kalamazoo water customers – in an area generally north of I-94 – will be getting a discount for running water while Portage water customers will not.

“Some Portage residents will be benefiting and the rest will not,” he said. “It is a question of equity and fairness. I would like to see Portage residents treated fairly.”

But Ford, who is also on the committee, said as a customer he expects to pay for that water usage and will clearly benefit from the sewer cap.

“Where I will benefit is the sewer commodity rate is much higher than the water,” Ford said, referring to the sewer rate of $4.70 per thousand gallons compared to the water rate of $3.19.

Ansari’s motion that Portage water customers pay the same amount for that quarter that they paid in 2013 failed by a 4-2 vote, with Councilwoman Patricia Randall supporting him. The council then voted 6-0 to support the committee’s recommendation.